Acacia Comm (ACIA) is down a substantial 12% to below $80 for the first time in months. This move comes ironically after the company rushed out a secondary offering at $100 to allow insiders to dump shares.
Per Benzinga, the stock is down as top customers ZTE and ADVA Optical Networking issued soft guidance. ZTE reportedly accounts for 40% of revenues and the weak revenue numbers isn't a good sign for Acacia.
One has to wonder if a connection exists between the insiders dumping nearly 4 million shares even after the stock had dipped $30 and the news that top customers aren't meeting forecasts. Either way, this is another prime example of not buying expensive stocks with insiders selling shares.
Acacia Communications: Why Haven't You Sold Already?
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